The future doesn’t look promising right now. Unemployment is at an all-time high with 14 million people jobless and 25 million unable to find full-time jobs.
President Barack Obama recently proposed the American Jobs Act, which would create 1.9 million new jobs and a one percent drop in unemployment rates by the end of 2012. For those of you about to graduate, or even those just looking for jobs, that’s great news. However, the funding for this draws sharp criticism from Republicans.
There will be a permanent income tax increase, mostly on the wealthy and on corporations. Independent economists have evaluated this plan and say it would succeed, only if it passes by the end of 2011. Otherwise, it won’t effectively lead to an economic recovery. However, Republicans in the House don’t seem to be budging on their opposition to the taxes.
I understand the mindset. It’s “their” money, not the government’s. But this act needs to proceed if we’re hoping to avoid a new recession. After 2012, the stimulus funding for this package will drop significantly. However, if we move ahead and the House works together to meet its demands, then there wouldn’t be a need for cutting Social Security and increasing taxes. The job market would be strong enough to support the creation of new jobs on its own.
This is all very optimistic though. Even if it passes, we won’t see levels of unemployment under five percent for a while. Hopefully, the 1.9 million jobs promised are created, and we can soon climb out of the recession and strengthen the value of a dollar.
Natasha Tomchin is a sophomore majoring in history and public relations.